Sedgman (SDM)

Shares in the mining services company have rebounded about 13.5 per cent from a nine-month low reached in late May, but are still about 18.8 per cent lower than at the start of the year. The stock has come under pressure amid speculation Leighton Holdings could sell its 31 per cent stake in the company as it seeks to strengthen its balance sheet, and was also hurt by heavy rainfall and flooding earlier this year. B
ut Sedgman
’s exposure to the coal industry has brokers bullish on its medium-term growth outlook, given its healthy pipeline in fiscal 2012 and buoyant commodity prices. It specialises in the design, construction and operation of coal handling and preparation plants as well as coal processing and materials handling technologies, and has recently diversified into services for base and precious metals producers, broadening its revenue streams. Deutsche Bank says it’s backing the new management’s contract execution ability to improve business profitability.